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Shell agrees US$70 billion deal to buy BG

Royal Dutch Shell said on Wednesday it had agreed to buy BG Group for 47 billion pounds (S$96.7 billion) in the first oil super-merger in a decade.

PHOTO: REUTERS

[LONDON] Royal Dutch Shell said on Wednesday it had agreed to buy BG Group for 47 billion pounds (S$94.7 billion) in the first oil super-merger in a decade.

In a joint statement, the two firms said that as part of the recommended deal Shell would pay 383 pence in cash and 0.4454 Shell B shares for each BG share. It said this represented a premium of around 52 per cent to the 90 trading day average.

The deal will result in BG shareholders owning around 19 per cent of the combined group.